user
Explain why the following statement is true: "Successful management of diversity is good for business."


assistant
Successful management of diversity, in terms of both staff and customers, is beneficial to a business because it encourages creativity and innovation. Furthermore, by welcoming different perspectives, businesses can create new value and often tap into markets that were previously unexplored. Additionally, businesses that embrace diversity create an atmosphere which is open and tolerant to different views, leading to greater employee satisfaction and motivation. As a result, businesses that actively manage diversity are likely to see greater employee retention and an increase in efficiency. Finally, research has demonstrated that diverse companies can see an increase in profits due to their improved marketing, better understanding of customer needs and heightened customer loyalty.